Cryptocurrency and Tech Stocks in Indonesia

DOI

10.2991/978-94-6463-204-0_31How to use a DOI?

Keywords

Bitcoin; Ethereum; Tech Stock; IDXTECHNO

Abstract

This study aims to test the effect of Bitcoin (BTC) and Ethereum (ETH) on the Indonesia Tech Stock Index (IDXTECHNO). BTC and ETH have the potential to become a hedge asset and haven if they are negatively correlated to IDXTECHNO. This research uses the GARCH model using daily closing prices from January 25, 2021, to April 13, 2022. The result of this study shows that BTC return has a significant negative effect on IDXTECHNO return. Hence, BTC tends to have the ability to function as a hedging instrument against IDXTECHNO. Whereas on the contrary, ETH turns out to have a significant positive effect on IDXTECHNO return. This situation signifies that ETH functions as a diversifier asset against IDXTECHNO. The upcoming research agenda will further study the testing of BTC and ETH function as a hedge asset against tech stock using a dynamic portfolio approach that can generate hedging effectiveness.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Andreas Renard Widarto
AU  - Harjum Muharam
AU  - Irene Rini Demi Pangestuti
PY  - 2023
DA  - 2023/10/04
TI  - Cryptocurrency and Tech Stocks in Indonesia
BT  - Proceedings of the International Conference on Economics and Business Studies (ICOEBS-22-2)
PB  - Atlantis Press
SP  - 368
EP  - 374
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-204-0_31
DO  - 10.2991/978-94-6463-204-0_31
ID  - Widarto2023
ER  -